II 109th CONGRESS 2d Session S. 3767 IN THE SENATE OF THE UNITED STATES August 1, 2006 Mr. Grassley (for himself and Mr. Baucus) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To delay the full implementation of the occupational mix adjustment to the wage index under the Medicare inpatient hospital prospective payment system.

1.

Short title

This Act may be cited as the Payment Accuracy Improvement Act of 2006.

2.

Delay in the full implementation of the occupational mix adjustment to the Medicare inpatient hospital wage index

(a)

Delay

With respect to payments to hospitals under the Medicare program for discharges occurring on or after October 1, 2006, and before October 1, 2008, notwithstanding any other provision of law, the following rules shall apply: (1)The Secretary of Health and Human Services may not apply an occupational mix adjustment to more than 10 percent of the hospital area wage index under section 1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)). (2)If the Secretary of Health and Human Services does apply an occupational mix adjustment to the hospital area wage index under such section 1886(d)(3)(E), the Secretary shall only use the data for such adjustment that was to be used to make the adjustment to such wage index under the proposed rule published by the Secretary in the Federal Register on April 25, 2006 (71 Fed. Reg. 24075–24076; relating to the development of data for the proposed occupational mix adjustment to the proposed fiscal year 2007 wage index). (b)

Study and report

(1)

Study

(A)

In general

The Secretary of Health and Human Services shall conduct a study on the process for applying an occupational mix adjustment to the hospital area wage index under section 1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)). (B)

Requirements

The study conducted under subparagraph (A) shall include an analysis of— (i)the occupational mix data collected during the first 6 months of 2006 and the accuracy of such data; (ii)the burden on hospitals associated with complying with the survey requirements under such section 1886(d)(3)(E); (iii)ways to improve the instrument used in conducting the survey described clause (ii); (iv)methods for collecting data necessary to apply an occupational mix adjustment to the hospital area wage index under such section 1886(d)(3)(E) other than the survey described in clause (ii); and (v)any other matters relating to such occupational mix adjustment that the Secretary considers appropriate. (2)

Report

Not later than January 1, 2008, the Secretary of Health and Human Services shall submit a report to Congress on the study conducted under paragraph (1) together with recommendations for such legislation and administrative actions as the Secretary considers appropriate.